Financial advice for children

It's become a tradition in sports that when players accomplish something notable, they give a shout-out to their mothers - before they say they're going to Disney World if they've won the Super Bowl.

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By Michelle Singletary

recordnet.com

By Michelle Singletary

Posted Jun. 13, 2012 at 12:01 AM

By Michelle Singletary

Posted Jun. 13, 2012 at 12:01 AM

» Social News

It's become a tradition in sports that when players accomplish something notable, they give a shout-out to their mothers - before they say they're going to Disney World if they've won the Super Bowl.

"Love you, Mom," they say or mouth.

And when it comes to financial wisdom, more than half of children ages 8 to 14 go to their mothers first when they have a question about money, according to T. Rowe Price's fourth annual survey about parents, kids and money. I wish they'd found out why. The survey respondents don't say.

I know there are many fathers taking the lead in teaching their children about using money. Dads may not get as much public recognition or as many gifts on Father's Day (consumers spend close to 50 percent more for Mother's Day than we do for Father's Day, according to the National Retail Federation), but many are modeling the financial behavior that will help their children become good money managers.

But let's say you're a father who can't quite articulate the financial advice your children need. I have just the papa to help mentor you.

For this month's Color of Money Book Club, I've selected "No One Ever Told Us That: Money and Life Letters to My Grandchildren" by John D. Spooner (Business Plus, $25.99), a Boston-based investment adviser.

Spooner has written 59 letters to his four grandchildren that cover topics such as getting a job to using debt to picking a financial adviser to owning real estate. His advice is common sense and amusing.

On getting a job, he writes: "Never call a busy person first thing on Monday morning. Busy people are getting into their business routines for the week. ... Call Tuesday afternoon, after lunch."

On owning assets, Spooner tells his grandchildren: "Everything you will ever own that you hope goes up in value will fluctuate. ... Anything you own can go down in price from what you paid. Believe in cycles in business and in life. Cycles always appear, many times when you wish they wouldn't."

It's hard for many young adults to think long term, but they should, and we need to remind them often, he says. "The big money in life, whether it's in stocks or real estate, or stamps or coins or paintings, is made long term."

Face your problems, Spooner writes in one of his letters. I wish more people would follow this sage advice.

I will host a live online discussion about "No One Ever Told Us That" at 9 a.m. July 12 at washingtonpost.com/conversations. Spooner will join me to answer your questions.

Every month, I randomly select readers to receive a copy of the featured book, which is donated by the publisher. For a chance to win a copy of this month's book club selection, send an email to colorofmoney@washpost.com with your name and address.

Contact Michelle Singletary, a personal finance columnist at The Washington Post, at singletarym@washpost.com.